2012 Farm Bill - compliance 6-22-11


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Details importance of Conservation Compliance provisions in 2012 Farm Bill reauthorization. Crop Insurance exemption a key correction to be made.

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2012 Farm Bill - compliance 6-22-11

  1. 1. Brad Redlin, Director IWLA Agricultural Programs Upper Mississippi River Initiative Missouri River Initiative Agricultural Conservation 2012 Farm Bill: Stewardship, Prosperity, and Fairness
  2. 2. IWLA Agricultural Programs 1. Farm Bill and Conservation 2. Conservation Compliance 3. 2012 Farm Bill
  3. 3. <ul><li>There are 3 means for delivering $ to agriculture via Farm Bill. </li></ul><ul><li>Commodity Subsidies, Conservation Programs, Crop Insurance. </li></ul>2008-2012
  4. 4. <ul><li>Conservation Title contains a suite of programs. </li></ul><ul><li>Programs meet different goals and utilize different methods. </li></ul><ul><li>2012 Farm Bill baseline WRP, GRP, FRPP, other: $0 </li></ul>
  5. 5. <ul><li>Cuts contained in debt-ceiling deal? </li></ul>HR 1 Continuing Resolution FY11 Conservation Stewardship Program cut $39 million.  Wetlands Reserve Program cut 19% or 48,000 acres. Environmental Quality Incentives Program cut $350 million.  <ul><li>President’s FY12 Budget </li></ul><ul><li>Conservation Stewardship Program cut 764,204 acres. </li></ul><ul><li>Environmental Quality Incentives Program cut $342 million. </li></ul><ul><ul><li>Grassland Reserve Program cut 30% or 165,684 acres.  </li></ul></ul><ul><ul><li>Wetland Reserve Program cut 158,895 acres. </li></ul></ul><ul><li>Wildlife Habitat Incentives Program cut $12 million.  </li></ul>U.S. House FY12 Budget Conservation Stewardship Program cut $171 million, or 21%. Environmental Quality Incentives Program cut $350 million, or 20%. Farm and Ranchland Protection Program cut $50 million, or 25%. Grassland Reserve Program cut 96,000 acres, equal to $30 million. Wetland Reserve Program cut 64,000 acres, equal to a $200 million cut, or 26%. Wildlife Habitat Incentives Program cut $35 million, or 41%. Voluntary Public Access and Habitat Incentives Program cut total $17 million. Conservation Operations cut $99 million below FY11.
  6. 6. IWLA Agricultural Programs 1. Farm Bill and Conservation 2. Conservation Compliance 3. 2012 Farm Bill
  7. 7. <ul><li>The Conservation Compliance </li></ul><ul><li>Highly Erodible Land (HEL) Compliance, Sodbuster, Wetland Conservation (Swampbuster) </li></ul><ul><li>Covenant </li></ul><ul><li>Public provides financial support via USDA payments. </li></ul><ul><li>Recipients protect soil and wetlands for the public. </li></ul><ul><li>Penalties are reduction or loss of farm program payments for draining existing wetlands or not maintaining soil protections. </li></ul>Ducks Unlimited photo NRCS photo NRCS photo
  8. 8. <ul><li>Swampbuster/WC: </li></ul>
  9. 9. <ul><li>HEL Conservation: </li></ul>
  10. 10. <ul><li>Trend: 80% of compliance violations waived on appeal. </li></ul>
  11. 11. <ul><li>All Good Faith determinations must be reviewed at state level. </li></ul><ul><li>Graduated Penalties established for HELC violations. </li></ul>
  12. 12. <ul><li>Sodbuster no deterrent </li></ul><ul><li>Payments, insurance are incentive to convert </li></ul><ul><li>Grassland conversion counties netted double insurance benefits of other counties </li></ul>
  13. 13. Ducks Unlimited photo Ducks Unlimited photo <ul><li>Sodsaver </li></ul><ul><li>Proposed Sodsaver provision : Land without a cropping history ineligible for Farm Bill supports. </li></ul><ul><li>Final Farm Bill : Applies to crop insurance subsidies and linked disaster payments; ineligibility limited to Prairie Pothole National Priority Area at the election of ea. Governor (IA, MN, SD, ND, MT) </li></ul>
  14. 14. IWLA Agricultural Programs 1. Farm Bill and Conservation 2. Conservation Compliance 3. 2012 Farm Bill
  15. 15. <ul><li>Commodity prices... </li></ul>… have been... ...doing well.
  16. 16. <ul><li>Consistently strong commodity prices preclude price-based programs’ subsidy payments. </li></ul><ul><li>The Direct Payment Program dominant among all commodity subsidies. </li></ul><ul><li>DPs facing serious scrutiny; Production ag organizations have proposed eliminating and investing savings in Crop Insurance. </li></ul>
  17. 17. <ul><li>Participation in Crop insurance is high across major commodities. </li></ul><ul><li>Premiums and indemnities have been growing rapidly. </li></ul>
  18. 18. <ul><li>‘ 12 Farm Bill baseline shows shift to insurance. </li></ul>
  19. 19. <ul><li>Federal Crop Insurance is subsidized for producers and insurance companies. </li></ul><ul><li>National average is 60% of premium is paid by subsidy, often even higher. </li></ul><ul><li>Crop Insurance exempted from compliance in 1996 Farm Bill. </li></ul>
  20. 20. <ul><li>Require compliance for crop insurance eligibility. </li></ul><ul><li>Require “legacy” soil conservation plans (pre-1996) be updated to current HEL standards. </li></ul><ul><li>Require soil conservation plans for all land eroding unsustainably (not limited to HEL). </li></ul><ul><li>Require nutrient management plans as compliance mechanism. </li></ul><ul><li>Require minimum setback from stream banks as compliance mechanism. </li></ul><ul><li>Compliance expansion proposals for 2012 Farm Bill: </li></ul>
  21. 21. “ Every time someone rips up prairie the price of grass goes up.” –SD Livestock producer’s testimony, US House Committee on Agriculture <ul><li>Sodsaver “Marker Bill” in U.S. Senate. </li></ul>
  22. 22. www.iwla.org/farmbill Stewardship, Prosperity, and Fairness The Izaak Walton League of America’s values-based vision of agriculture for all of America Brad Redlin Director, Agricultural Programs 651.649.1446 ex 13 [email_address]